SF and Austin rents are almost exactly the same as they were in 2020

"The supply side factor is, I would say, by far the biggest difference between San Francisco and Austin. Austin is just building a ton, and really, I would say setting kind of a good example for growing in a way that actually meets increasing demand."

"As rental demand in Austin spiked during the pandemic, developers seized the opportunity to build new apartments - and constructed more than almost any other U.S. market in 2023 and 2024 - which eventually lead to downward pressure on prices."

"San Francisco continued to build, well, not much of anything. The city is notorious for building the least new housing of almost any metro area. Simultaneously, a new tech industry, artificial intelligence, was born."

During the pandemic, San Francisco experienced a population decline of approximately 116,000 residents as people relocated to other cities, particularly Austin, causing San Francisco rents to fall while Austin rents surged over 20% in 2021. By 2025, both cities' rents had returned to early 2020 levels, but through different mechanisms. Austin aggressively built new apartments, constructing more housing than almost any other U.S. market in 2023 and 2024, which absorbed demand and maintained affordable rents. San Francisco, conversely, continued its pattern of minimal housing construction. The emergence of the artificial intelligence industry brought new tech workers to San Francisco, creating renewed rent pressure on the limited housing stock, though overall tech job numbers remain down.

Read at SFGATE